Question: To receive full points, please s how all your work, including the timeline, formulas, and calculator keystrokes (if used any). Circle or highlight the answer.
To receive full points, please show all your work, including the timeline, formulas, and calculator keystrokes (if used any). Circle or highlight the answer.
Q3. There is a storable commodity, whose carry charge is 2% of the spot price per year in continuous terms. The interest rates are 5% in continuously compounded terms. The current time is 5 months prior to the settlement date. The spot price is 274. If the annualized convenience yield in continuous terms is 3%, what is the futures price?
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